Tenders for port concessions Olvia and Kherson due in mid-2019

17 December 2018

Tenders for port concessions Olvia and Kherson due in mid-2019

Tender procedures for the transfer of stevedoring company Olvia and the Kherson Sea Commercial Port to concessionaires are scheduled to start March-April 2019, with signing set for May-June 2019. The total amount of expected investment by the concessionaires will be UAH 17.3 B (USD 585 M) over the 35-year term of the concession for Olvia port and UAH 1.4 B (USD 50.5 M) for the 30-year concession of Kherson port. Investments will be focused on upgrading infrastructure and port development. During the first three years, Olvia plans to build a new grain terminal with a capacity of 2.0 M tons annually (investment USD 56.2 M), and an urgent asset upgrade in Kherson seaport (investment USD 7.8 M).

Over 25 Ukrainian and foreign companies from the USA, China, France, Switzerland, Great Britain, Japan, Turkey, Qatar, and Korea have previously expressed interest in the concessions. The Ministry of Infrastructure and the International Finance Corporation (IFC) of the World Bank Group signed an agreement to develop public-private partnerships in the port industry in November 2017. Consequently, MTBS, together with Ukrainian legal partner Interlegal and other consortium partners, started the full feasibility study and transaction advisory services for these two port concession projects in March 2018.